Saudi Crown Prince Mohammed bin Salman announced plans to expand investments and trade relations with the United States by investing at least $600 billion over the next four years.
According to the Saudi State news agency, The Crown Prince’s announcement was made during a phone call with U.S. President Donald Trump, and it’s expected to capitalize on the economic prosperity created by the Trump administration’s reforms. But the question on everyone’s mind is: where is this $600 billion coming from? Is it public or private spending, and what sectors will benefit from this investment?”
The US-Saudi relationship has been a cornerstone of Middle Eastern geopolitics for decades. Since Saudi Arabia discovered oil in 1938, the two countries have enjoyed a strong relationship.
However, this partnership has not been without its challenges. The 1973 oil embargo and the September 11 attacks have all tested the resilience of the US-Saudi alliance.
Saudi Arabia‘s aim to invest $600 billion in the US is not surprising, as the Gulf state has been seeking to diversify its economy and reduce its dependency on oil exports. The Crown Prince’s Vision 2030 program is a key component of this strategy, which aims to develop sectors such as tourism, entertainment, and renewable energy.
Trump enjoyed close ties with Gulf states, including Saudi Arabia, during his first term during his first term.
Trump said following his inauguration on Monday that he would consider making Saudi Arabia his first destination for a foreign visit if Riyadh agreed to buy $500 billion worth of American products, similar to what he did in his first term.
“I did it with Saudi Arabia last time because they agreed to buy $450 billion worth of our product. I said I’ll do it, but you have to buy American products, and they agreed to do that,” Trump said, referring to his 2017 visit to the Gulf kingdom.
The Saudi Crown Prince’s $600 billion investment plan is a major development that could have far-reaching implications for the US and Saudi Arabia.
